All Topics / Legal & Accounting / Capital Gains

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  • Profile photo of LeahBLeahB
    Member
    @leahb
    Join Date: 2003
    Post Count: 13
    July 7, 2005 - 10:19 am

    Hi
    We have completed a wrap on a house and it falls within the 12 months CGT. Can you defer half to the following year or there is not that option available. (It looks like we will only do the 1 wrap.)

    Thanks
    Leah

    Profile photo of Fast LaneFast Lane
    Member
    @fast-lane
    Join Date: 2004
    Post Count: 527
    July 8, 2005 - 8:56 am

    I believe that you only pay CGT on a wrap when the contracts are finally exchanged between you and the wrappee. This will happen when they’ve finished paying the mortgage (in 25 or 30 years or earlier etc.)or they refinance.

    This might not be entirely correct so double check with somebody who definately knows the ins and outs of wrapping.

    Profile photo of Mark UnwinMark Unwin
    Participant
    @markunwin
    Join Date: 2005
    Post Count: 35
    July 11, 2005 - 7:01 am

    The profit margin on the wrap is not assessable until the property settles. Wraps do not fall under CGT and are taxed as ordinary income (there CGT discount will never apply).

    Cheers,

    Mark Unwin
    Williams Partners Pty Ltd
    http://www.wp.com.au

Viewing 3 posts - 1 through 3 (of 3 total)

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